AMR Corp., its parent, is going to reach out to other airlines as it proceeds with its bankruptcy, according to WSJ colleagues Mike Spector, Susan Carey and Anupreeta Das. This comes after AMR had said it would only consider mergers after it had emerged from bankruptcy.

US Airways is clearly an interested bidder, having stalked around the bankrupt AMR and even negotiated with American’s unions. A US Airways/AMR pair-up would create the largest airline in the U.S. by traffic.

But there are other airlines likely to be contacted by AMR about a possible deal, WSJ reports.

JetBlue Airways is among those WSJ says are to be contacted. The smaller airline, however, could face cultural issues with behemoth AMR.

Alaska Airlines has also been named by analysts as a potential match, but much like JetBlue, culture and size could get in the way.

A report from Maxim Group analysts last month said they “pretty much discount” either JetBlue or Alaska from the equation because of their niche models.

Delta has also been watching closely, WSJ has been reporting. But for Delta, the nation’s second-biggest airline operator, competition concerns would be significant.

As for U.S. Airways, its shares jumped 3.1% to $13.91 in an afternoon rally following the WSJ report.

“We believe that a merger of AMR and LCC is necessary at some point to further rationalize the industry,” the Maxim Group analysts wrote last month. “A combined company, once successfully integrated could command superior earnings and a higher multiple then either company on its own.”

Comments (5 of 6)

Get real. The only realistic outcome is an AA-US merger. It is now only a question on when, and which airline is in control.

8:11 pm July 10, 2012

RL wrote :

Too bad jetBlue and Alaska don't merge - what an airline that would be! They DON'T need American under any condition.

8:05 pm July 10, 2012

Desert Flyer wrote :

I would have the management of Alaska take this airline and then inject an investment from BA. Alaska knows how to run an airline for business travellers - BA has access to needed capital.

7:13 pm July 10, 2012

Lrothfl wrote :

Under antiquated U.S. law - BA could purchase 49.9% of AA and still be within the law. The only negative would be BA pushing their horrible aircraft interiors on AA aircraft. Right now, almost every AA / BA flight around the world is "code shared" and at many airports around the world that they both service they share the same terminal.

6:41 pm July 10, 2012

JJ wrote :

BA is the logical partner. It would cement the OneWorld partnership. They have dealt with similar issues around union contracts and other legacy costs. The problem is we have nutty rules over foreign ownership of airlines. So instead of encouraging foreign investment in what would be a global US airline, we will consolidate domestic routes.

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